2020 Ocean Shipping Industry Trends to Prepare for

As the New Year draws closer, we look at how global trade
may be affected. With these 2020 ocean shipping trends to keep an eye out for,
you will be able to decide for yourself what business decisions to make.

Increase in Shipping Costs

If you were to compare the
shipping industry costs to China at the dawn of 2019, it was much higher than
it is now. There was a dip in fixed rates during the months of April and May,
but with the introduction of the low sulfur regulation as per IMO 2020. The
costs will be factored based on the types of carriers and thus will be adjusted
accordingly.

Becoming more Sustainable and Eco-friendly

With the effect of IMO 2020 Low Sulfur Fuel regulation,
there are also more regulations coming in that will require ship owners to
become more sustainable and environmentally friendly. The LSF regulation looks
towards lowering emissions by 2050, where other measures include cleaning dirty
ballast water such/discharge by 2024.

Technology to Increased Efficiency

The use of technology to aid in
bettering processes and business models/structures will continue in the
shipping industry. This will improve the likes of customer experiences, and digitize
processes via automation and digitization.

Industries of Scale

Following the concept of industries
of scale, the shipping industry will become more balanced with carriers
controlling supply with more discipline and becoming market influencers. Balancing
of supply and demand will occur, but smaller carriers will continue to be
vulnerable as they look towards forming alliances.

Geographical Shifts

Since mid of 2018, there have been geographic
shifts within the shipping industry temperament that showed that importers were
looking towards alternate counties of origin for their businesses. Whilst this
have been occurring within the last year, there will be shift in volumes in
2020. That would mean that Southeast Asian countries will be gearing up for infrastructural
investments and offerings, whereas Chinese shipping volumes will reduce.

2020 Ocean Shipping Industry Trends to Prepare for was last modified: January 14th, 2020 by Transco International